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China’s golden move

For years we have heard stories about China buying astronomical amounts of gold outside of public eye, while the West has sold all of its stash, and even sold what they did not have! Having seen the common immediate result of every recent “democratic revolution” conducted subversively by the US in the form of national gold reserved being secretly transferred to Washington as part of its efforts to prop up its fiat money system, the recent news that China may push for its currency to be added to the IMF’s SDR basket as early as beginning of next month certainly has a little more hidden in it than what meets the eye.

“I think eventually, this year or next year, the RMB will be included,” said Dr. Fan Gang, an independent member of China’s Monetary Policy Committee until 2010 and a well-known academic economist. “It will further accelerate use of the RMB. But I would emphasise the importance of the bonds. You need bonds (for central banks) to hold as reserves and that is the uncertainty, because the Chinese government does not want to issue too much more debt”

This is the key, China is pushing to get into the SDR, but it is being held back by the flawed design of the current financial system, which is based on paper and DEBT!

We are sure that behind the scenes the real “negotiations” go more like this:

China: “We have so much GOLD, which we have not yet admitted publicly but will do if forced, why can’t we use that to back our reserves? Why do we need DEBT to support it? We already have too much debt, the world is saturated with debt, we want to use our GOLD!”